Registration issue

[Saurabh Singh]

Dear sir,

I provide a services " rent a cab" and also carrying a business of" milk supply to amul". The total turnover of both the business exceeds 20 lakhs.

As milk is under nil rate of duty , I want to know what are my registration requirements for gst.

Do I have to register both the business verticals separately?

Please advice.

[Rajagopalan Ranganathan]

Sir,

Since milk is zero rated commodity you need not include its value in your turnover. Excluding milk if your turnover is less than 20 lakhs you need not register yourself under GST Act.

[Saurabh Singh]

Dear sir,

The definition of " aggregate turnover " include all taxable supply as well as exempt supply. As per sec 2(6) of cgst act.

Further sec 22 provides that if " aggregate turnover "exceeds 20 lakh liability to take registration arises.

Can u pls elaborate your answer. I m getting different views regarding this.

[Rajagopalan Ranganathan]

Sir,

In my opinion milk is not exempted from payment of GST. It is not taxable under GST Act. Therefore its value need not be included in the aggregate turnover.

[Saurabh Singh]

Thank you sir .

[Ganeshan Kalyani]

In my view you can opt for two Gstin. One for service and another for supplying milk.

[Preeti Sharma]

Dear Saurabh,

Milk is exempted under GST. But the definition of aggregate Turnover includes exempt supply also, therefore if aggregate turnover of both exceeds 20 lacs, then registeration under GST is compulsory. Because aggregate turnover means supplies by a taxable person having the same PAN.

Now the question is about centralised or decentralised rgstn. GST is based on decentralised rgst. As the nature of supply is different, you may take separate registerations.

AI Summary

Aggregate turnover includes exempt supplies; registration required if combined supplies exceed the GST threshold, separate GSTINs may be used.
Registration under GST depends on whether a person's aggregate turnover-which the statute defines to include taxable and exempt supplies made by the same PAN-exceeds the statutory threshold. Debate exists over whether supplies of milk treated as non taxable or zero rated are excluded, but if milk is an exempt supply it must be counted, and if the combined supplies exceed the threshold registration is required. Separate GST registrations for distinct business activities are an available practical option.